Extracts from a company’s accounts show the following balances:
Inventories 114Trade receivables 216Cash 42Trade payables 180Bank overdraft 60
Wc w s cay’s ck a, caca as w ca acs?A
The following statements have been made about inflation:Statement 1: Inflation leads to a distribution of income and wealth.Statement 2: If a country has a higher rate of inflation than its partners, its imports become relatively more expensiveand its exports become relatively cheaper.
Wc abv sas s ?A
Both of them
Statement 1 only
Statement 2 only
Neither of them
The net present value of a proposed project is $20,000 at a discount rate of 5% and $(28,000) at 10%.
Wa s a a jc, as ca ac?A
A company is considering increasing its credit period to customers from one month to two months. Annual revenue iscurrently $1,200,000. It is expected that the increased credit period would increase sales by 25% and result in anincrease in profit of $45,000, before any INCREASE in finance charges have been taken into account. The company’scost of capital is 10%.
Wa s aca c s sa, a ak acc ay cas acs cas?A
Increase in profit of $35,000
Decrease in profit of $35,000
Increase in profit of $30,000
Decrease in profit of $30,000
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